BILL NUMBER: AB 971 CHAPTERED 10/10/99 CHAPTER 611 FILED WITH SECRETARY OF STATE OCTOBER 10, 1999 APPROVED BY GOVERNOR OCTOBER 5, 1999 PASSED THE ASSEMBLY SEPTEMBER 10, 1999 PASSED THE SENATE SEPTEMBER 9, 1999 AMENDED IN SENATE SEPTEMBER 9, 1999 AMENDED IN SENATE SEPTEMBER 8, 1999 AMENDED IN SENATE SEPTEMBER 3, 1999 AMENDED IN SENATE AUGUST 17, 1999 AMENDED IN SENATE JUNE 30, 1999 INTRODUCED BY Assembly Member Olberg (Coauthor: Assembly Member Longville) FEBRUARY 25, 1999 An act to amend Section 33492.86 of the Health and Safety Code, and to add Section 100.7 to the Revenue and Taxation Code, relating to redevelopment. LEGISLATIVE COUNSEL'S DIGEST AB 971, Olberg. Redevelopment. (1) Existing law specifies payments of tax revenue that the redevelopment agency for the March Air Force Base Project Area is required to make to other agencies. This bill would provide that the March Joint Powers Redevelopment Agency is not obligated to make those payments to the County of Riverside, the County Free Library Fund, and the County Fire Fund, and instead shall make payments required under a specified cooperative agreement entered into with the County of Riverside and the March Joint Powers Authority. (2) Existing law authorizes a redevelopment plan or amendment of a plan adopted on or after July 1, 1993, with respect to a project area within or in proximity to certain military bases that are subject to closure, to use the year of adoption or the 1994-95 fiscal year as the base year for purposes relating to determining the fiscal impact on the state of adjusting the base year. This bill would, in addition, apportion property tax revenues to the Victor Valley Economic Development Authority based upon a calculation that would change the base year for the George Air Force Base Project Area to the 1997-98 fiscal year, as provided. By imposing new duties in the apportionment of ad valorem property tax revenues, this bill would impose a state-mandated local program. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 33492.86 of the Health and Safety Code is amended to read: 33492.86. (a) This section shall apply to a redevelopment project area the territory of which includes March Air Force Base, that is adopted pursuant to a redevelopment plan that contains the provisions required by Section 33670, and that is adopted pursuant to this chapter. The redevelopment agency shall make the payments to affected school districts and community college districts required by subdivision (a) of Section 33607.5, except that each of the time periods governing the payments shall be calculated from the date the county auditor makes the certification to the Director of Finance pursuant to Section 33492.9 instead of from the first fiscal year in which the agency receives tax-increment revenue. (b) (1) Pursuant to Section 33492.3, the March Air Force Base Project Area adopted pursuant to this article may include all, or any portion of, property within the military base that the federal Base Closure and Realignment Commission has voted to realign when that action has been sustained by the President and the Congress of the United States, regardless of the percentage of urbanized land, as defined in Section 33320.1, within the military base. (2) (A) Pursuant to Section 33492.3, the March Air Force Base Project Area may include territory outside the military base. The project area shall be entirely contained within a one-mile perimeter of the boundaries of March Air Force Base, as those boundaries exist on January 1, 1995. At no time shall the aggregate acreage of the project area outside the boundaries of March Air Force Base, as those boundaries exist on January 1, 1995, exceed 2 percent of the total acreage contained within that one-mile perimeter, and these areas may only be included in the project area upon a finding of benefit to the March Air Force Base Project Area and with the concurrence of the legislative bodies of the County of Riverside, the City of Moreno Valley, the City of Perris, and the City of Riverside. (B) The agency for the March Air Force Base Project Area may, with the concurrence of the relevant legislative body pursuant to subparagraph (B), pay for all or a part of the value of land and the cost of the installation and construction of any structure or facility or other improvement that is publicly owned outside the jurisdiction of the agency, if the legislative body of the agency determines all of the following: (i) That the structure, facility, or other improvement is of benefit to the project area. (ii) That no other reasonable means of financing the facilities, structures, or improvements are available to the community. (iii) That the payment of funds for the acquisition of land or the cost of facilities, structures, or other improvements will assist in the elimination of one or more blight conditions, as identified pursuant to Section 33492.83, inside the project area, or provide housing for low- or moderate-income persons. (C) Concurrence of the relevant legislative body shall be demonstrated by the adoption of an ordinance by the community where the structure, facility, or other improvement is to be located which authorizes the redevelopment of the area within its territorial limits by the redevelopment agency for the March Air Force Base Project Area. (D) All projects authorized by this subdivision shall be within communities which are contiguous to the March Air Force Base Project Area. (c) Notwithstanding subdivision (a) of Section 33492.15 or any other provision of law, the March Joint Powers Redevelopment Agency shall not be obligated to make any payments required by subdivision (a) of Section 33942.15 to the County of Riverside, the County Free Library Fund, and the County Fire Fund. Instead, the March Joint Powers Redevelopment Agency shall be required to make those payments required under the Cooperative Agreement entered into among the County of Riverside, the March Joint Powers Authority, and the March Joint Powers Redevelopment Agency dated August 20, 1996, as that agreement may be amended from time to time. SEC. 2. Section 100.7 is added to the Revenue and Taxation Code, to read: 100.7. Notwithstanding any other law, commencing with the 1999-2000 fiscal year, the apportionment of property tax revenues in the County of San Bernardino shall be modified as follows: (a) The auditor shall apportion an amount of property tax revenues to the Victor Valley Economic Development Authority that is equal to the amount that would be allocated to that authority if the base year for the George Air Force Base Project Area was changed to the 1997-98 fiscal year for purposes of Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code. (b) The auditor shall reduce the amount of property tax revenues apportioned to all other jurisdictions within the George Air Force Base Project Area on a pro rata basis in an amount equal to the amount apportioned under subdivision (a). (c) On or before June 30, 2004, and on or before June 30 of each fifth year thereafter, the Victor Valley Economic Development Authority shall remit to the Controller an amount of money equal to the amount of the increased aid provided by the state to school entities as a result of this section, plus interest. The interest shall accrue until the payment is made. The rate of interest shall be the rate of interest on the bonds of the authority. If there are no bonds, the rate of interest shall be the rate of interest earned by the Pooled Money Investment Board. The Department of Finance shall determine the amount to be remitted, after consultation with the authority. SEC. 3. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.